Podcast: 2022 Crypto Theses with Ryan Selkis
08 Dec 2021
If your answer is yes to any of these questions, then you have come to the right place. In this resource, you will find some of the best and trustable financial products that let you earn interest on Bitcoin or Altcoin’s interest by just holding them. These financial products use the various mechanism to lend these cryptos to other institutes, margin trading exchanges and other ways to generate a return and thus share the earnings with you.
I have done my best to find all the trustable resources that could be used. Most of them offer interest in Bitcoin and a few are part of Defi (Decentralized finance) which lets you earn interest in popular cryptocurrencies.
Disclaimer: Even though all these methods work, you should know that lending itself is a risky segment. A few of them have a locking period and based on your risk management, you should pick one.
I have also shared a few websites that let you earn interest on Stable coins holding, which is something worth knowing and using in the time of the bear market or when the crypto market is going down.
|Bitcoin Saving Accounts||Interest rate for BTC (APY)||Interest Up to (APY)||Withdrawal||Supported coins|
|Cryptocom||4%||8%||Instant||BTC, ETH, BNB, BAT, USDT, USDC|
|Vauld (For Indian users)||6%+||6.7%||BTC, ETH, USDT|
|BlockFi (Recommended, available globally )||6.2%||6.2%||Up to 2 days||BTC, ETH, GUD|
|Celsius||3.75%||3.75% (BTC), 8% (Stable coins)||Instant||BTC, ETH, XRP, Stable Coins & more|
|Binance (Great for trading as well)||Variable||1.5-3%||Instant||BNB, BTC, USDT, ETH, ADA, BCH and many more.|
|Nexo||BTC not available ATM||8%||Instant||All StableCoins|
|Compound finance||BTC not available ATM||WBTC (0.17%), DAI (2-5%)||Instant||WBTC, ETH, DAI, USDC, REP, ZRX|
For earning interest in Bitcoin, BlockFi should be your first choice as Bitcoin Lending Platform. They offer interest up to 6.2% Annually on Cryptos. BlockFi supports following Cryptocurrencies:
Highlights of BlockFi:
The amount of interest you will earn on crypto lending on BlockFi varies based on the amount you wish to lend. The below chart gives a glimpse of Annual Percentage Yield (APY)* you will be earning:
Note: The APY is calculated based on monthly compounding.
The locking period for Blockfi is one month and the withdrawal requires a manual interview and can take up to 7 days. Do keep a note of fees for withdrawal on BlockFi interest account (BIA).
Celsius is a platform that offers Interest On Bitcoin and other major cryptocurrencies. The interests are paid out weekly, and if you take an interest in the platform token (CEL), your earned interest rate will be higher. At the time of writing, these are the coins supported by Celsius for earning interest:
Highlights of Celsius network:
Vauld is an Indian crypto exchange and lending platform which is incorporated in Singapore, and has Indian founders. The company was started in 2018, and they recently raised a series A funding of $25 million from many notable investors.
Vauld is a combination of Lending/borrowing platform and a crypto exchange. The beauty with Vauld is, it automatically give interest on the cryptos that are on your wallet, and hence it is becoming a popular platform to earn interest on Bitcoin.
The platform is easy to use and you can get started within minutes. Especially if you are an Indian user, you would love the Vauld platform for lending your Bitcoin and earn handsome interest on it.
Binance is the world’s best cryptocurrency exchange and is loved by millions of traders globally. Binance offers a feature called “Binance Savings”, where you can lend your Bitcoin and earn interest on it. The interest rate is flexible, and at the time of writing, they are offering 1.6% Estimated Annual Yield.
To use this feature:
Here you will be able to lend your Bitcoin and start earning interest. You also have an option to auto-subscribe, which will automatically lend your Bitcoin balance at the end of the day. This is idle for traders who are taking a break of a few days, and still want their idle Bitcoin to earn extra income for them.
Compound finance is at the forefront of decentralized finance where you can lend few of the major cryptocurrencies and interest on them. When you lend cryptocurrencies using Compound, you adding funds to the liquidity pool. You are not directly dealing with borrowers; rather they are borrowing from the market. Interest rates are determined algorithmically (real-time) based on supply and demand.
At the time of writing, you can lend the following cryptocurrencies on Compound finance:
Here is the recent interest rate (Supply APR) for all supported cryptocurrencies:
With time, you can expect Compound finance to add more cryptocurrencies.
The most common way to access the Compound protocol is by using Metamask. However, for users who are paranoid about security, you should use Defi saver that let you access compound protocol using a hardware wallet such as Ledger Nano X, Ledger Nano S, Trezor, and Fortmatic.
There are two stable coins supported by Compound finance right now:
Highlights of Compound.finance:
I discovered Nexo a few months back and already shared about this with CoinSutra users on Telegram and on Twitter. If you are an existing member, you may be aware of Nexo already. This is another high-quality platform that let you earn Interest on Stable coins. You will be earning up to 8% interest, and interest is paid out daily, which automatically start earning high yield Interest.
Supported coins: USD, EUR, GBP, USDT, TUSD, USDC, PAX, DAI
Highlights of Nexo:
The newest addition is Zero withdrawal fees for any of the cryptocurrencies from the Nexo wallet. They have a web app and mobile wallet, which makes it easy to use the Nexo platform.
As the cryptocurrency and decentralized financial market are increasing, I’m hopeful to see more trustable networks and platforms in the coming days. For now, these are some of the best options for you to earn interest in cryptocurrency and Bitcoin. Depending on how you are using cryptocurrencies, you can pick to earn interest in Bitcoin or in Stable coin.
Here is a summary of the above-listed platforms:
It would be nice to know which platform are you using to earn interest in Cryptocurrencies and Bitcoin? After trying any of these above-listed platforms, do come back to share your review and opinion.
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